Puerto Rico Export Services and New Resident Tax Incentives

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Puerto Rico Export Services and
New Resident Tax Incentives
June 2012
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Puerto Rico at a Glance
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Act to Promote the Exportation of Services of 2012
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Act to Promote the Relocation of Individual Investors of 2012
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Introduction to Puerto Rico
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Strategic Location
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Serves as a gateway to the continental United
States and Latin America
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Largest and busiest airport in the Caribbean
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Direct flights to many major cities, such as New York
(3.5 hours), Miami (2.5 hours), Madrid and London
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Introduction to Puerto Rico
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Priviledged Location
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Ideal climate: Average temperature of 83°F in winter
and 85°F in summer
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Variety of terrain: Coast, plains and mountains, including
the only tropical rain forest in the U.S. National Forest
System, El Yunque
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Great diversity of natural resources: Ranked among the
top jurisdictions with the best beaches in the world
A Cultural and Entertainment Powerhouse
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Puerto Rico is world-renowned for its music, art, nightlife and cuisine
• Casals Festival
• Puerto Rico Symphony
Orchestra
• Puerto Rico JazzFest
• Major Concerts (Rolling
Stones, Ricky Martin, Paul
McCartney, Madonna, etc.)
• Rum Capital of the World
• Best food, drink and restaurants
by Travel & Leisure 2011
• More than 20 casinos
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Over 40 Museums
Museum of Art of Puerto Rico
Ponce Art Museum
Museum of Contemporary Art
• Restaurants recognized by Condé Nast, New
York Times, Gourmet Magazine
• Local restaurants by international
restaurateurs (Jean Georges, Alain Ducasse)
• Local Iron Chef - Robert Treviño
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Benefits and Protections for Investment
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Puerto Rico is part of the U.S.
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Puerto Rico has many attributes to attract investment
– No U.S. passport required for U.S. citizens
– Applicability of the U.S. federal laws and presence of U.S. federal courts
– U.S. currency, and banking regulated under the U.S. system (FDIC)
– FINRA and SEC regulated financial service providers
– Intellectual property protection under U.S. law
– Participation in the trade agreements of the U.S.
– Access to federal funds for infrastructure, social programs, education and
research, among others
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Favorable Tax and Cost Structure
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A unique proposal for multinational corporations
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Foreign tax structure
– There is no income tax at the federal level to residents of Puerto Rico
– Tax treatment for Controlled Foreign Corporation (CFC), where federal
income taxes for U.S. based multinational corporations are deferred until
profits are repatriated to the U.S.
– Favorable tax rates and incentives
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Competitive costs compared to the U.S.
– The average cost of doing business in Puerto Rico is 10% lower than the U.S.
average
– San Juan offers the lowest costs of doing business of any major U.S. city
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First Rate Education and Health Care
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Schools, hospitals and doctors in P.R. are as good as in the U.S.
Education
• Primary and Secondary Schools: Puerto Rico has over 1300 public schools and over 500 private
schools.
• English and Bilingual Schools – Most schools are bilingual and some are fully in English
(e.g., St. John’s, Robinson, TASIS Dorado).
• U.S. College Bound – Many Puerto Rican high school students pursue college degrees in
the United States, including at some of the most elite universities.
• Higher Education: Puerto Rico also has over 50 post-secondary institutions.
• University of Puerto Rico Río Piedras is world-renowned in a number of fields and the
University of Puerto Rico Mayaguez is listed among the top engineering schools in the
United States.
• Hospitals: Puerto Rico has a total of 66 hospitals managed by private and public sectors with a
total of 11,887 authorized beds, all of which are required to meet U.S. standards of excellence.
Health Care
• Medical and Research Centers: With a rich history in the pharmaceutical industry, Puerto Rico is
home to a number of respected medical and research centers. The Medical Center of the
University of Puerto Rico provides comprehensive quality health care, research programs and
public education. The Cardiovascular Center is the top heart hospital in the Caribbean.
• Physicians: Puerto Rico has a vast number of primary care and specialist doctors, all of which are
Board Certified.
• Affordable: Health care costs in Puerto Rico are approximately 40% less than in the U.S.
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Perfect for Doing Businesses
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New companies will find an attractive environment to do business
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Business Friendly Environment
– Puerto Rico has a strong yet flexible legal and regulatory framework, with all
corporate law and regulations published in English
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English Language
– English and Spanish are the official languages of Puerto Rico, and English is
widely spoken throughout the island
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Highly Qualified Professionals
– Puerto Rico boasts high standards of education, and has highly qualified
professionals in all fields, including law, finance, engineering, etc.
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Modern and World Class Infrastructure
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“…among the best in Latin America & the Caribbean...” – Financial Times
Extensive highway
system, over 4,629 miles
Port of San Juan is the 8th
busiest port in the U.S.
PR’s air access is by far
the best in the Caribbean
SJU is the busiest airport
in the Caribbean
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Modern and World Class Infrastructure
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Modern and World Class
Outstanding infrastructure
for VoIP and broadband
Urban Train - Over 40,000
daily passengers
Over 1.8 million visitors in
just 5 years
PR Convention Center
Over 3 million visitors in
just 6 years
Coliseo de Puerto Rico
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